For the month of June, Thomson Services has the following transactions:
June 2 Obtain cash by borrowing $22,000 from the bank.
June 3 Pay rent for the current month, $1,800.
June 7 Provide services to customers, $6,500 for cash and $2,900 on account.
June 11 Purchase equipment necessary for operations, $18,500 cash.
June 17 Pay employees’ salaries for the first half of the month, $5,200.
June 22 Pay dividends to stockholders, $2,300.
June 25 Receive cash in advance from customers, $2,800.
June 28 Pay utilities for the month, $1,900.
June 30 Record salaries earned by employees for the second half of the month $5,200. Payment will be made on July 2.

Required:
1. Record each transaction.
2. Identify the transactions involving cash.
3. Assuming the balance of cash at the beginning of June is $12,500, post each cash transaction to the Cash T-account and compute the ending cash balance.
4. Prepare a statement of cash flows for the month of June, properly classifying each of the cash transactions into operating, investing, and financing activities.
5. Verify that the net cash flows reported in the statement of cash flows equal the change in the cash balance for the month.